UAE Data Center Colocation Market On Track To Exceed 1.5 GW IT Load By 2030 Arizton

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"UAE Data Center Colocation Market Research Report by Arizton"Get Insights on 57 Colocation Data Center Facilities across the UAE

According to Arizton research, the UAE data center colocation market size was valued at USD 448 million in 2024 and is expected to reach USD 1.73 billion by 2030, growing at a CAGR of 25.33% during the forecast period.

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Report Summary:

MARKET SIZE - COLOCATION REVENUE: USD 1.73 Billion (2030)

CAGR - COLOCATION REVENUE: 25.33% (2024-2030)

MARKET SIZE - UTILIZED WHITE FLOOR AREA: 6.12 million sq. feet (2030)

MARKET SIZE - UTILIZED RACKS: 131.64 Thousand Units (2030)

MARKET SIZE - UTILIZED IT POWER CAPACITY: 1,510 MW (2030)

BASE YEAR: 2024

FORECAST YEAR: 2025-2030

UAE Strengthens Digital Core with 6.12 Million Sq. Ft. of White Floor Area by 2030

The UAE Data Center Colocation Market is projected to expand to 6.12 million sq. ft. of utilized white floor area by 2030. By the end of 2024, the market had reached around 1.5 million sq. ft. of white floor space, of which nearly 93% was utilized, underscoring the strength of demand. From 2025 to 2030, the cumulative utilized area is expected to surpass 24.6 million sq. ft., reflecting the UAE's growing role as a digital hub in the region. Abu Dhabi and Dubai remain the core locations for large-scale data center development, while Fujairah, Al Ain, and Sharjah are gaining traction. Supportive policies, including free trade zones offering foreign ownership and tax benefits, continue to attract global operators. Recent developments, such as e& UAE's fourth facility in Fujairah, further reinforce the country's position in the colocation landscape.

Around $2.5 Billion in New Investments to Power Upcoming Data Centers in the UAE by 2026

Arizton has recently launched its comprehensive database on 61 data centers in the UAE , providing an in-depth look at the country's evolving colocation market. The database covers 38 existing facilities and 23 upcoming projects, offering detailed insights into location, operators, capacity, investment value, and project status. For operational facilities, it highlights white floor area, IT load capacity, rack capacity, design standards (Tier I–IV), and redundancy details. For upcoming facilities, it tracks investors, floor area, IT load, investment breakdowns, and expected commissioning timelines.

The UAE currently operates with a capacity of over 350 MW, while upcoming projects are expected to add nearly 500 MW in the next few years. Supported by favorable policies, smart city initiatives, and strong investor interest, the country is set to attract around $2.5 billion in new investments by 2026, cementing its position as one of the fastest-growing data center markets in the Middle East.

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UAE Emerges as a Digital Infrastructure Hub with Rising IoT & Big Data Adoption

The UAE is accelerating the adoption of big data and IoT technologies, strengthening its vision for smart cities and driving digital transformation across industries such as healthcare, transportation, and energy. At the core of this shift is the Dubai IoT Strategy, powered by the Dubai Pulse platform, which serves as the city's digital backbone and opens new avenues for growth and efficiency. Building on this momentum, companies like du and Zoho Corp are introducing innovative IoT-driven solutions, from smart energy management in retail to scalable low-code platforms for enterprises.

As these technologies expand, they generate rising computing power needs and data traffic, directly fueling demand for high-performance servers and data centers. This synergy is positioning the UAE as a fast-emerging hub for regional digital infrastructure and advanced technologies.

UAE AI Revolution: How Digital Adoption is Powering the Next-Gen Data Center Boom

The UAE is steadily advancing its National Strategy for AI, aiming to become a global leader in artificial intelligence by 2031 through strong government initiatives and active private-sector collaboration. In 2025, Microsoft partnered with G42 to launch a Responsible AI foundation and expand the AI Good Lab in Abu Dhabi, further strengthening the country's AI research ecosystem. With 99% internet penetration, 21.9 million mobile connections, and over 11 million active social media users, the nation is experiencing rapid digital adoption. This growth is driving demand for advanced digital infrastructure and data centers, where AI and cutting-edge technologies are enhancing efficiency, scalability, and sustainability, underpinning the UAE's broader digital transformation ambitions.

Vendor Landscape

Existing Colocation Operators

• Khazna Data Centers
• Gulf Data Hub
• Equinix
• Moro Hub
• e& UAE
• Pacific Controls
• Core42 (Injazat)
• Others

New Operators

• Pure Data Centres Group
• XDS DATACENTRES

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What Key Findings Will Our Research Analysis Reveal?

• What is the count of existing and upcoming colocation data center facilities in the UAE?
• What factors are driving the UAE data center colocation market?
• How much MW of IT power capacity is likely to be utilized in the UAE by 2030?
• Who are the new entrants in the UAE data center industry?

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